Founded in 2020, MusicBird aims to build a worldwide portfolio of music rights. The company shall become the go-to partner for record labels, composers and musicians and aims to innovate the monetization of music rights by using big date analytics.
On January 2023, MusicBird entered into a credit agreement for an asset-based credit facility with MUFG Bank as administrative agent, joint lead arranger, sole bookrunner and f/x provider, to finance the further growth of its business.
The credit is based on the projected cash follow to be generated by three specific music catalogues. In order to ensure that the music catalogues and royalties generated thereunder are ring fenced, these assets were transferred to a newly incorporated Swiss subsidiary of MusicBird named MusicBird Rights. Under the credit agreement, MusicBird Rights was required to create a security interest in the music catalogues. The creation of this novel security interest was challenging not least because the music catalogues are governed by the laws of different jurisdictions. In addition, the company was required to coordinate the new credit agreement with its existing Swiss financing arrangement with its shareholders.
Homburger has advised MusicBird on all Swiss law aspects in connection with its financing agreement with MUFG. The team was led by partner Daniel Haeberli (financing, pictured) and included Fabrice Eckert (financing) and Stefan Oesterhelt (tax).
L’articolo Homburger advised MusicBird with certain financing aspects proviene da Legalcommunity.ch.